Notes to Accounts of Glory Films Ltd.

Mar 31, 2013

1 a) Estimated contract remaining to be executed and not provided for Rs. Nil. (Previous Year: Rs. Nil)

b) Bank Guarantee Rs. 15 Lacs (Previous Year: Rs. 53.00 Lacs)

c) Corporate Guarantee Rs. 760 Lacs to the Bank for a associate company (Previous Year Rs. 760 Lacs.)

2 a) i) Term Loan from Banks are secured by way of first charge on pari-passu basis on fixed assets both present and future.

These loans are further collaterally secured by way of second charge on pari-passu basis on Stocks and Receivables and personal guarantee of Directors including Managing Director of the Company.

ii) Loan against Vehicles are secured against hypothecation of vehicles belongs to the company including third party.

b) Working Capital loans from banks are secured by way of hypothecation of Stocks and Receivables on pari-passu basis. These loans are further collaterally secured by way of second charge on pari-passu basis on Fixed Assets of the Company and personal guarantee of Directors including Managing Director of the Company.

3 Balance of Debtors, Creditors, Loans and Advances, given as well as taken, are subject to confirmations.

4 In the absence of information with the company regarding the status of the supplier as defined under the "Micro Small and Medium Enterprises Development Act, 2006" the details if any, the provision or payment of interest and related disclosure under the said Act has not been disclosed.

5 Previous Year''s figures have been regrouped/ rearranged wherever necessary to make them comparable with the current year''s figures.

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Mar 31, 2012

A) Terms/ rights attached to shares

The Company has only one class of equity share having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share.

a) Additional Information to Long Term Borrowings

The Long term portion of term loan are shown under long term borrowings and current maturities of the Long term borrowings are shown under the current maturities as per the disclosure requirements of the Revised Schedule VI to the Companies Act, 1956.

b) Details of Securities and Terms of Repayments Secured Loan

A Term Loan from Banks

i) Term Loan from State Bank of India are secured by way of first charge on pari-passu basis on entire fixed assets both present and future.

These loans are further collaterally secured by way of extnetion of first charge on the entire current assets of the company consisting of raw materials, stock in process, finished goods, stores & spares, other consumables and receivables with Indian Overseas Bank and HSBC Bank on pari passu basis.

ii) Term Loan from Indian Overseas Bank are secured by way of first charge on pari-passu basis on fixed assets both present and future. These loans are further collaterally secured by way of second charge on pari-passu basis with State Bank of India on Fixed Assets and on entire current. Further Equitable mortgage of Office Building located at 201, Vintage Pearl, 29th Road, Bandra West, Mumbai - 400 022 with first pari-passu basis with State Bank of India, Central Bank of India and Indian Overseas Bank for Term Loan facility.

C Loan against Keyman Insurance Policy is granted from Life Insurance Corporation of India against Keyman Insurance Policy. Against these policies, loan was obtained based on the prevailing surrender value which is @ 90% of surrender value from LIC of India, by assigning the policies to LIC of India.

II Unsecured Loan

i) DBS Bank - Sale Bill Discounting facility

The said Bill Discounting facility sanctioned by DBS Bank to Company against personal guartnees of Shri Yogesh Kela, Managing Director and Shri Umesh Kela, Executive Director.

The above facilities are secured by way of 1st pari passu charge with other bank on entire current assets of the company consisting of Raw Material, Work in Progress, Finished Goods, Stores & Spares, Other Consumables and Book Debts and 2nd charge on pari pasu with other bank on the fixed assets of the company both present and future consisting of Plant & Machinery, Land & Building, Factory Furniture & Fixture alongwith personal gurantee of Shri Prakash Kela, Chairman, Shri Yogesh Kela, Managing Director and Shri Umesh Kela, Executive Director.

1 a) Estimated contract remaining to be executed and not provided for Rs. Nil. (Previous Year: Rs. Nil)

b) Bank Guarantee Rs. 53 Lacs (Previous Year: Rs. 58.18 Lacs)

c) Corporate Guarantee Rs. 7,60 Lacs to the Bank for a associate company (Previous Year Rs. 7,60 Lacs.)

2 a) i) Term Loan from Banks are secured by way of first charge on pari-passu basis on fixed assets both present and future.

These loans are further collaterally secured by way of second charge on pari-passu basis on Stocks and Receivables and personal guarantee of three Directors including Managing Director of the Company.

ii) Loan against Vehicles are secured against hypothecation of vehicles belongs to the company including third party.

b) Working Capital loans from banks are secured by way of hypothecation of Stocks and Receivables on pari-passu basis. These loans are further collaterally secured by way of second charge on pari-passu basis on Fixed Assets of the Company and personal guarantee of three Directors including Managing Director of the Company.

3 Balance of Debtors, Creditors, Loans and Advances, given as well as taken, are subject to confirmatations.

4 Office Building is pending for transfer & registration in the name of the Company.

5 In the absence of information with the company regarding the status of the supplier as defined under the "Micro Small and Medium Enterprises Development Act, 2006" the details if any, the provision or payment of interest and related disclosure under the said Act has not been disclosed.

6 Previous Years figures have been regrouped/ rearranged wherever necessary to make them comparable with the current year's figures.

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Mar 31, 2010

CONTINGENT LIABILITIES:

1 a) Estimated contract remaining to be executed and not provided for Rs. 1263.00 Lacs (Previous Year: Rs. 1104.00 lacs)

b) Bank Guarantee Rs. 81,94,790 (Previous Year: Rs. 97,74,410)

c) Corporate Guarantee Rs. 760.00 Lacs to the Bank for a associate company (Previous Year Rs. 685.00 lacs)

2 a) Term Loan from Banks are secured by way of first charge on pari-passu basis on fixed assets both present and future.

These loans are further collaterally secured by way of second charge on pari-passu basis on Stocks and Receivables and personal guarantee of three Directors including Managing Director of the Company.

b) Working Capital loans from banks are secured by way of hypothecation of Stocks and Receivables on pari-passu basis. These loans are further collaterally secured by way of second charge on pari-passu basis on Fixed Assets of the Company and personal guarantee of three Directors including Managing Director of the Company.

c) Vehicles loans are secured by hypothecation of respective vehicle.

d) Loan from Streamline Shipping Co Pvt Ltd is secured by delivery of shares transferred in lenders name.

3 Balance of Debtors, Creditors and Loans and Advances, given or taken, are subject to confrmatations.

4 Office Building is pending for transfer & registration in the name of the Company.

5 Related Party Transactions

a) Name of related parties and description of relationship

Sr. No. Description Name of the Party

i) Associate Concern M/s. Immense Packaging Pvt. Ltd.

ii) Key Managerial Personnel Mr. Prakash N. Kela

Mr. Yogesh P Kela Mr. Umesh P Kela

6 During the year Share warrant money of Rs. 1,72,80,000/- consisting of 16,00,000 Share Warrant has been transferred to capital reserve on account of forfeiture.

7 Warrant application money of Rs. 90,00,000/- is pending for approval from BSE and NSE and hence not considered for diluted EPS.

8 Share Capital includes 35,00,000 Global Depository Receipts (GDRs) issued and allotted at a price of US $ 1.0246 per GDR pursuant to the Offering Circular dated 18th February, 2010 and GDRs are listed on LuxSE and are traded on the Euro MTF. Each GDR represents two equity share of Rs.10 each.

9 Information perusals to the provision of Paragraphs 4D and Part II of schedule VI to the Companies Act 1956: Licensed and Installed Capacity and Production

Licensed Capacity: No License is required

Installed Capacity: Installed Capacity cannot be defned in terms of quantity and value since the same, in the opinion of the directors will vary depending upon the product mix

(Previous Year : As above)

10 Value of Imports on CIF Basis Rs.8,83,91,528/- for Raw Material and Rs.8,92,45,579/- towards Machinery Purchased (Previous Year: Rs.10,45,39,903/- for Raw Material and Rs.26,02,03,406/- towards machine spares Purchased)

11 Expenditure in Foreign Currency: NIL (Previous Year: NIL)

12 Earnings in Foreign Exchange on FOB Value of Export Rs. Nil (Previous Year: Rs.38,18,738/-)

13 The Profit for the year includes Rs 63,03,475/- (Previous Year: .Rs. (44,48,541)/- ) on account of exchange differences.

14 Sales include Trading Sales of Rs. 2,20,68,422/- (Previous Year Rs. 66,48,156) and Sale of Plastic Scrap Rs. 2,56,66,340/- (Previous Year: Rs. 17,828,830/-)

15 In the absence of information with the company regarding the status of the supplier as defned under the "Micro Small and Medium Enterprises Development Act, 2006" the details if any, the provision or payment of interest and related disclosure under the said Act has not been disclosed.

16 The Company is in the process of appointing a full time company secretary by the provision of section 383A of the companies Act 1956. In the absence of the company secretary, these financial statements have not been authenticated by a whole time company secretary u/s 215 of the companies Act 1956.

17 Previous Years figures have been regrouped/ rearranged wherever necessary to make them comparable with the current years figures.